- Marriott is in control of over 30 different hotel brands and 6,700 properties, giving them more options than any other company in the industry. They have also adjusted their booking process to be direct, and avoid booking agencies and third-parties. Their loyalty programs are currently the
top in the industry, and they have successfully integrated all three into a single program with over 110 million members. - Tag-line: “Success is Never Final” 6 Resources and Capabilities What unique resources and capabilities enable the company to deliver the value proposition? Identify at least 3. - First, the company offers the widest array of hotel brands, occupying space in more than 130 countries globally. This gives them a unique advantage and capability since they are able to rent out rooms in more 3,000 geographical locations. Additionally, due to their massive scale of proximity reach, they have been able to grow their inventory at a much quicker pace than any other competitor. - Secondly, the 3-tiered loyalty program is second to none. Since its induction in 2018, this loyalty program has grown exponentially, reaching over 110 million customers. According to The Motley Fool (3), “Revenue per available room (RevPAR) should experience an incremental lift.” They argue that when customers are engaged in the loyalty program, they’ll have a greater choice of affiliate hotels, pricing, and influence with their decision. Ultimately, this should provide the capability of higher conversion rates. - Thirdly, Marriott offers a technological capability which gives them an edge up on third-party travel agency booking platforms. Moreover, their robust home-built online platform is able to capture bookings directly and offer services such as price-matching and branded app usage.
7 Business Model and Value Chain What is the company’s business model and what are the components of the value chain that are most critical to the firm? Business Model - Marriott franchises and/or manages hotel locations rather than own them outright. - Two revenue streams: 1. Management Fee Revenues- Earnings through managing/franchising properties including base management fees, franchise and license fees, and incentive management fees. (9) 2.Other Revenues- Earnings through 3rd party licensing, land rental income, branding fees, credit card licensing and others. (9) Value Chain 1.Sales/ Marketing - Aggressive Rewards Program. Incentives provided through the rewards program consists of over 250 benefits options for loyal customers. A few years ago, the rewards program was ranked the best in the industry by U.S News and World Report. 2. Quality Control - Achieved by ensuring consistency in guest room set-up, customer feedback opportunities, and the development of employee standards. Marriott wants loyal customers to have a feeling of familiarity with each experience.
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